In recent years, the UAE government aimed to further develop human capital and diversify the economy away from the heavy dependence on the oil industry by increasing significantly the support of SMEs and entrepreneurs. Little research has been conducted on entrepreneurship in the Middle East and particularly in the Arabian Gulf region (Ryan et al., 2010).
The research study aims to contribute to scale development and validation to measure Entrepreneurial Potential in the Arabic Context. The study also aims to propose a definition for Entrepreneurial Potential.
To achieve this goal, a literature review was conducted to provide deeper understanding of the characteristics and attributes pertaining to individuals with entrepreneurial potential. A theoretical model was selected first from the literature and later enhanced through empirical data. The scale to measure entrepreneurial potential was developed and validated. Reliability analysis was conducted on a sample of 436 students and 95 entrepreneurs.
The findings of this research resulted in 32-item scale using Hinkin’s procedure (1995). The scale model was able to differentiate individuals with entrepreneurial potential. A definition of entrepreneurial potential was proposed.
Keywords: Entrepreneurial Potential; entrepreneur; scale development; competencies
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